State Pension rates increased by 4.8% on April 6 (Image: Getty)
Older state pensioners across the UK are being given a weekly cash boost of up to £8.45 following a triple lock change. State Pension rates go up at the start of each new tax year on April 6 in line with the triple lock, with this year’s increase set at 4.8%.
The triple lock determines exactly how much the State Pension rises each year based on whichever is the highest out of three factors – the consumer price index (CPI) measure of inflation (measured for September in the previous year), average wage growth between May and July of the previous year, or 2.5%. As average wage growth was the highest out of these three factors at 4.8%, the State Pension has now increased by this amount.
The 4.8% increase applies as of April 6 and means the full basic State Pension is now worth £184.90 per week, up from £176.45, giving older pensioners a maximum weekly cash boost of £8.45.
READ MORE: DWP confirms automatic £200 payments for state pensioners under 80
READ MORE: Older state pensioners get £801.23 monthly payment from April
Over a full year, the increase amounts to a total of £9,614.80 in pension payments, up from £9.175.40, meaning those who get the full basic State Pension will receive an extra £439.40 annually.
Men born before April 6, 1951, and women born before April 6, 1953, receive the basic State Pension but whether you get the maximum amount from April 6 depends on your National Insurance record.
To get the full £8.45 weekly boost, a man born between 1945 and 1951 usually requires 30 qualifying National Insurance years, while men born before 1945 require 44 qualifying years.
For women, you’ll need 30 qualifying years if you were born between 1950 and 1953, or 39 qualifying years if you were born before 1950. If you have less than the full number of qualifying National Insurance years then your basic State Pension will be less than £184.90 per week from April 6.
As for younger retirees on the new State Pension, the weekly rate is now worth £241.30 per week, up from £230.25, giving pensioners a maximum weekly cash boost of £11.05, or an extra £575 annually if you get the full rate.
The figures are based on the maximum possible amount for those with a full qualifying National Insurance record, so those without enough qualifying years will receive less.
The Department for Work and Pensions (DWP) said the government’s commitment to the triple lock means pensioners’ incomes will rise by up to £2,100 over this Parliament, and this year’s uprating will help millions across the UK facing cost of living pressures.
The State Pension increase comes alongside a 4.8% boost to Pension Credit, taking the standard minimum guarantee to £238 per week for single pensioners and £363.25 per week for pensioner couples from April 6.
The uplift means Pension Credit is now worth an average of £4,300 per year and for those who qualify, the benefit also unlocks access to a wealth of further support including free TV licences, Council Tax reductions and help with housing costs.
Minister for Pensions Torsten Bell said: “After a lifetime of work and contribution, people deserve a decent retirement. Raising the State Pensions faster than prices, ensuring it is a pension they can rely on, is how we make that a reality for millions.”
